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The Smartest Post-College Money Plan: Start Budgeting Now

If you’ve recently graduated from college, and especially if you don’t have a job, it might seem ridiculous to turn your attention to budgeting. You’re exhausted from exams, and you have no money to budget. Why worry now, right?

It’s a fair question, but as anyone who has been there knows, this is precisely the time to avoid money mistakes. Unless you’re lucky and your parents are willing to pay your way for the time being, from free rent to food, to going out with your friends, you’re going to be spending in the near future – and spending too much can naturally lead to trouble.

For instance, many recent college graduates rely heavily on credit cards. When you don’t have a job, it’s not the best idea to pile all of your expenses on your credit card and figure you’ll pay it off once you get a job.

So if you’re an unemployed recent college graduate, here are some strategies to consider implementing to set yourself up for a bright financial future – debt free.

Get a job. It may not necessarily be your dream job, but find a job. It’s recommended that you visit temp agencies and recruiters to find an emergency job. It’s important to have some money coming in, even if the position isn’t closely related to your major or what you want to do in life.

New grads should not be so picky. It isn’t necessary that you get your dream job right out of college, you have to work your way up to get that job. Don’t worry, it’s okay to take a week or two off after graduation to recoup and relax – but generally, try not to waste too much time and start looking for a steady source of income.

Don’t stay in that hastily found job for long. Start looking for a better career move as soon as possible – you want the money coming in, not satisfaction settling in. If you’ve been at the job for more than six months, it’s time to roll up your sleeves and ask everyone you know for recommendations, or put yourself out on LinkedIn – because when it comes to job hunting, it always helps to know someone.

Live cheaply. You know what it’s like to live on a college budget, so don’t go crazy with spending your money on entertainment, clothes, travel, or going out. It’s not the best idea to spend money carelessly if you don’t land a job soon because the more you spend, the deeper you will dig yourself into debt.

It may be tough to go the frugal route and watch TV with your parents instead of going to the movies with your friends, but you should think about your new spending habits as “financial yoga – hurts now, helps later.” Even if you have a new, promising job, it’s smart to keep your expenses as low as possible – think about getting roommates.

That might be the last thing you want to hear if you had a bunch of roommates in college and you’re itching to finally live solo, but roommates will allow you to cut back on your rent and utilities in a big way. Whatever you do, keep expenses low so you can see what your budget can handle. You don’t want to get an apartment, update your wardrobe and buy a car, then realize your entry-level paycheck can’t handle the financial stress.

For a list of helpful college graduate accounts, loans, and services available at First Financial, click here. We know there are things you need to set-up your financial future, so we’ve customized some of our products and services like special Savings and Checking accounts, as well as an auto loan offer and more – to make this next step of your life one smooth ride. Remember, if you ever need any financial guidance or have a question, reach out to us at 866.750.0100, email info@firstffcu.com or feel free to stop by any of our locations – we are here to help!